Finance Act 2004

2F1(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

(2)[F2A] pension payable to the member is a scheme pension for the purposes of this Part if—

(a)it is payable by the scheme administrator or by an insurance company selected by the scheme administrator, and

(b)it satisfies the condition in sub-paragraph (3).

(3)The condition is that (subject to sub-paragraph (4)—

(a)the pension is payable (at least annually) until the member’s death or until the later of the member’s death and the end of a term certain not exceeding ten years, and

(b)the rate of pension payable [F3at any time during any] relevant 12 month period is not less than the rate payable [F4at the relevant time].

[F5(3A)“The relevant time” is—

(a)in the case of the first relevant 12 month period, the day on which the member becomes entitled to the pension, and

(b)in the case of any other relevant 12 month period, immediately before the beginning of that period.]

(4)None of the following prevent the pension satisfying the condition in sub-paragraph (3)—

[F6(a)the reduction of the pension if the member became entitled to it by reason of the ill-health condition being met,]

(b)a reduction in the rate of the pension which applies to all the scheme pensions being paid to or in respect of members of the pension scheme, F7...

F8(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F9(d)the reduction of the pension in consequence of a pension sharing order or provision,

(e)forfeiture of entitlement to the pension in circumstances prescribed by regulations made by the Board of Inland Revenue,

(f)the reduction of the pension in consequence of an order of a court,

(g)if the pension is under a public service pension scheme, its reduction by abatement, or

(h)the reduction of the pension in any other circumstances prescribed by regulations made by the Board of Inland Revenue.]

[F10(4A)In sub-paragraph (4) references to the reduction of a pension include its ceasing to be payable (whether temporarily or permanently).]

F11(4B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F13(5A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)A pension is payable until the end of a term certain even if it may, after the death of the member during the term, end on the pensioner—

(a)marrying,

[F14(aa)entering into a civil partnership,]

(b)reaching the age of 18, or

(c)ceasing to be in full-time education.

[F15(6A)The Board of Inland Revenue may by regulations provide that if—

(a)a scheme pension payable by an insurance company selected by the scheme administrator of a registered pension scheme (“the original scheme pension”) ceases to be payable, and

(b)in consequence of the transfer of sums or assets (or both) from the insurance company to another insurance company in connection with the original scheme pension ceasing to be payable, another scheme pension becomes payable by the other insurance company (“the new scheme pension”),

the new scheme pension is to be treated, to such extent as is prescribed by the regulations and for such of the purposes of this Part as are so prescribed, as if it were the original scheme pension.]

(7)A relevant 12 month period is any 12 month period which—

(a)begins on or after the first anniversary of the day on which the member becomes entitled to the pension, and

(b)ends before the day on which the pension ceases to be payable.

[F16(8)Regulations under sub-paragraph [F17(4)(e) or (h) F18...] may include provision having effect in relation to times before they are made.]

[F19(9)Where, under a collective money purchase arrangement—

(a)a scheme pension has become payable to the member, and

(b)the member subsequently becomes entitled to income payable by virtue of section 36(7)(b) or 87(7)(b) of the Pension Schemes Act 2021 (periodic income paid while pursuing continuity option 1),

the income so payable is to be treated for the purposes of this Part as a continuation of the scheme pension.

(10)Where, under a collective money purchase arrangement—

(a)the member becomes entitled to income payable by virtue of section 36(7)(b) or 87(7)(b) of the Pension Schemes Act 2021 (periodic income paid while pursuing continuity option 1), and

(b)no scheme pension was previously payable to the member,

the income so payable is to be treated for the purposes of this Part as a scheme pension.]